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Japanese Bond Yields Dip on BOJ Policy Expectations
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Overview
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Japanese government bond (JGB) yields decreased as investors anticipate the Bank of Japan's (BOJ) monetary policy decision. The 10-year JGB yield fell 2 bps to 0.685%, with the 20-year JGB yield dropping 0.5 bps to 1.420% and the 30-year JGB yield decreasing 0.5 bps to 1.620%. Expectations of an imminent change in policy are high, with over 80% of economists predicting a shift away from negative interest rates by the end of next year.
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How might the expectations of a policy change affect investor strategies and market stability?
How might the potential shift in BOJ's policy impact the overall bond market and the Japanese economy?
What factors could influence the Bank of Japan's decision to normalize its monetary policy?
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